List of Unsecured Bonds in India 2026

Unsecured bonds have become an important part of India’s corporate debt market, offering investors an opportunity to earn fixed returns without the issuer pledging specific assets as collateral. 

These bonds rely primarily on the financial strength and credit rating of the issuing company, which makes evaluating the issuer’s credibility an essential step before investing. Many companies issue unsecured bonds to raise capital for business expansion, refinancing, or operational needs. 

Continue reading for a list of unsecured bonds available in India in 2026, along with key information to help investors understand the available options, assess potential returns, and make informed fixed-income investment decisions.

What are Unsecured bonds?

Unsecured bonds are debt instruments issued by companies or institutions without any specific assets pledged as collateral. Unlike secured bonds, these bonds are backed only by the issuer’s creditworthiness and ability to repay the borrowed amount.

Investors who purchase unsecured bonds lend money to the issuer in return for periodic interest payments and the repayment of principal at maturity. Since there is no collateral involved, the risk level may be higher compared to secured bonds, and investors often evaluate the issuer’s credit rating before investing.

Key Features & Benefits of Unsecured Bonds

Here are some of the key features and benefits of unsecured bonds-

No Collateral Requirement

Unsecured bonds are issued without pledging specific assets as security. They are backed by the issuer’s overall creditworthiness and financial stability.

Fixed Interest Payments

Most unsecured bonds offer fixed interest payouts at regular intervals such as monthly, quarterly, or annually, providing predictable income to investors.

Defined Maturity Period

These bonds come with a predetermined maturity date when the issuer repays the principal amount to investors.

Portfolio Diversification

Unsecured bonds can help diversify an investment portfolio by adding a fixed-income component alongside other asset classes.

Higher Potential Returns

Since these bonds are not backed by collateral, they may offer comparatively higher interest rates than secured bonds to compensate for the additional risk.

Flexible Investment Options

Unsecured bonds may be issued with different tenures, allowing investors to choose durations that align with their financial goals.

Tradable in Secondary Markets

Some unsecured bonds are listed on exchanges, giving investors the option to buy or sell them before maturity depending on market conditions.

List of Unsecured Bonds In India

Who Should Invest in Unsecured Bonds?

Unsecured bonds may be suitable for investors who are comfortable taking moderate credit risk in exchange for potentially higher returns compared to some traditional fixed-income instruments.

Investors Seeking Higher Interest Income

Investors looking for better returns than typical low-risk deposits may consider unsecured bonds, as these instruments often offer relatively higher interest rates.

Experienced Investors

Individuals who understand credit risk and evaluate factors such as issuer reputation, financial strength, and credit ratings may find unsecured bonds appropriate for their portfolios.

Portfolio Diversification Seekers

Investors aiming to diversify their portfolio across different fixed-income instruments may include unsecured bonds as part of a broader investment strategy.

Medium to Long-Term Investors

Those who can keep their funds invested for a fixed tenure without needing frequent liquidity may consider unsecured bonds, as they typically have defined maturity periods.

Investors Comfortable with Credit Risk

Since unsecured bonds are not backed by collateral, they may suit investors who are willing to accept a certain level of issuer risk after assessing the creditworthiness of the issuing entity.

Risks Involved in Unsecured Bonds

Here are some of the risks involved in unsecured bonds-

Credit Risk

Unsecured bonds are not backed by any collateral. If the issuing company faces financial difficulties or defaults, investors may face delays or losses in receiving interest or principal repayment.

Higher Default Risk

Compared to secured bonds, unsecured bonds generally carry a higher risk of default because there are no specific assets pledged to recover funds in case the issuer fails to repay.

Interest Rate Risk

If market interest rates rise after purchasing the bond, the value of existing bonds may decline in the secondary market, which can affect investors who wish to sell before maturity.

Liquidity Risk

Some unsecured bonds may not be actively traded in the secondary market. This can make it difficult for investors to sell their bonds quickly without accepting a lower price.

Credit Rating Downgrade Risk

If the credit rating of the issuing company is downgraded, the market value of the bond may fall, which can impact the investor’s overall returns.

Inflation Risk

Fixed interest payments from unsecured bonds may lose purchasing power if inflation rises significantly during the investment period.

Tax Applicability on Unsecured Bonds

Taxation on unsecured bonds in India depends on how the returns are earned—either through interest payments or capital gains from selling the bond.

Tax on Interest Income

Interest earned from unsecured bonds is fully taxable under the head “Income from Other Sources.” The income is taxed according to the investor’s applicable income tax slab. In some cases, the issuer may deduct Tax Deducted at Source (TDS) if the interest amount exceeds the prescribed limit.

Capital Gains Tax on Sale

If an investor sells the bond in the secondary market before maturity, the profit or loss from the sale is treated as capital gains.

• Short-Term Capital Gains (STCG): If the bond is sold within 12 months, the gains are taxed according to the investor’s income tax slab.
• Long-Term Capital Gains (LTCG): If held for more than 12 months, the gains may qualify as long-term capital gains and are taxed according to prevailing tax regulations.

Tax on Maturity Amount

At maturity, the principal amount received is not taxed again, but any interest received during the investment period remains taxable.

Disclaimer

The Bank bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 11 March 2026. Prices, yields, trade values, and other related details are subject to change in real time depending on market movements and liquidity. This content is intended solely for informational and educational purposes and should not be considered as investment advice, recommendation, or an offer to buy or sell any securities.